Management Code 17 Notes Unit 1 (UGC NET Paper 2)

Functions of Management

Basically there are five important functions of management. Most Widely Accepted Five Managerial Function Given By Koontz O’ Donnell are as follows:
1. Planning
2. Organizing
3. Directing
4. Controlling
5. Staffing

Luther Gullick POSDCoRB describes 7 functions of Management

1. P – Planning
2. O – Organizing
3. S – Staffing
4. D – Directing
5. Co – Coordinating
6. R – Reporting
7. B – Budgeting

 For Detailed Study Material Click on the follwing link:

Functions of Management : Planning, Organizing, Staffing, Directing and Controlling



Distinction between Management and Administration

According to Olive Sheldon

“Administration as a function is concerned with the determination of the corporate policy, the co-ordination of financial, production and distribution the settlement of the compass of the organization under the ultimate control of the executive.”

“Management is concerned with the execution of the policy, within the limits set up by administration and the employment of the organization for the particular objects before it.”

Three different view points about administration vs management

1. Administration is Different from Management
• According to this point of view “Administration is a higher level activity while management is a lower level function”. Is assumes that administration is determinative and management is the executing part.
• It means administration involves decision making and policy formulation while management is concerned with the execution of policies and supervision of work.

2. Administration is a Part of Management
According to this point of view “Management is a generic term for the total process of executive control involving responsibility for effective planning and
guidance of operations of an enterprise. Administration is that part of management which is concerned with the installation and carrying out the producers by which the programme is laid down and communicated and the progress of activities is regulated and checked against plans.”

3. Administration and Management are One
Many researchers in the field of management like Henry Fayol, William Newman, Chester Barnard, George Terry, Louis A Allen, Koontz, Donnell; feel administration and management are same without any distinction.

According to Newman
“Management or Administration is. the guidance, leadership and control of the efforts of a group of individuals towards some common goals.”
Henry Fayol studied, that all undertakings require the same functions and all must observe the same principles. It means the distinction between administration and management is superfluous or academic; but practically both the terms can be used interchangeably.
Table 1.1 A comparison between Administration & Management

  Administration Management
1 Major focus is on policy formulation and objective determination. Policy execution for objective achievement.
2 Nature of function is determinative. Nature of function is executive.
3 Planning and controlling are the main functions involved in it. Directing and organizing are the main functions involved into it.
4 It is broad and conceptual. It is narrow and operational.
5 It is influenced mostly by external forces. It is influenced by internal forces.
6 Conceptual and human skills are prominent. Technical skills are prominent.
7 Entrepreneurs and owners are involved. Employees are involved.
8 It is mainly top level function. It is mainly middle and lower level function.
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